Reference no: EM132470991

Question 1: Which of the following procedures would the auditor perform in testing the completeness assertion for accounts payable?

Select

1. Examine a sample of cash disbursements made after year end to determine whether the disbursements were for goods applicable to the previous year.
2. Reconcile vendor's statements with the accounts receivable trial balance.
3. Examine production equipment for useful lives.
4. Gather purchase orders immediately previous to and subsequent to year-end.

Question 2:  An auditor may best test commissions expense for salespeople when control risk is low by performing which of the following procedures?

Select

1. Alternative procedures.
2. Tagging and tracing.
3. Analytical procedures.
4. Subsequent proof of cash.

Question 3: An internal control benefit of centralized purchasing in an organization includes which of the following?

Select

1. Mathematically accurate vendor invoices.
2. An increase in the number of vendors used.
3. Increased compensation of agents through side agreements.
4. Separation of authorization from the custody and recording function.

Question 4: Please indicate the proper sequence of the acquisition cycle:

1. Approval of items for payment.

2. Authorized requisition for goods or services.

3. Cash disbursements.

4. Receipt of goods and services.

5. Authorized purchase of goods or services.

Select

1. 2, 1, 4, 5, 3
2. 2, 4, 5, 1, 3
3. 2, 5, 4, 1, 3
4. 2, 5, 1, 4, 3

Question 5: Which of the following controls represents a control over cash that is unique to cash accounts?